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Apr 22, 2010 02:16
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Look! A Horse!, federal Stafford loans are not based on credit but rather based on the FAFSA form. Once you've submitted that, what you need to do is wait for the financial aid office to send you your awards package, which will tell you what you still need to take out in PLUS or private loans. PLUS loans are federal loans in a parent's name on behalf of a child. I highly recommend using this option rather than a private loan if at all possible. The interest rate will finish lower, plus it has all the same deferments/forbearances as a Stafford. The one big drawback is that it is only in the parent's name and can never be transferred  For a private loan you would most likely need a co-signer, which it sounds like would be one of your parents. We always tell parents that if they're going to be on the loan anyway, it might as well be the far safer and more forgiving PLUS loan! Rick, it is probably because they readjusted for your grant and your need-based calculation (aka the EFC). You can always call and ask the financial aid office but I would bet it has to do with that grant rising. Also, GOOD! Stay away from private loans if at all possible, and good for you! 100 HOGS AGREE, no worries! Who hasn't made that error? One wonders why they don't move the buttons to stop that from happening... Anyway! I don't judge people with high totals, and frankly your amount is right around the average, so don't feel too bad! With so much in either type, I highly suggest consolidation. You would need to process the FFELP loans separately from the private loans. Unfortunately those can't be consolidated together. You can go through Direct Loans for your FFELP consolidation, and Wells Fargo for your private loans. Good luck!
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Apr 24, 2010 01:45
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Hey Wiggy, have a question. My grad programs' summer session runs from mid May to mid August(I have classes that entire period) and I was told by financial aid to file the 2010-2011 for my summer aid. Will the fact that they had me go for the 2010-2011 have any impact on the amount that I can take out for fall? Thanks.
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May 1, 2010 02:05
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Are you asking if you have additional eligibility for your second year of grad school? The answer is yes, you sure do, unless this isn't your second year and you've somehow exhausted all of your previous grad-level eligibility. If the financial aid office told you to submit the FAFSA, chances are you still have funds available.
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May 2, 2010 12:17
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I got denied for a Wells Fargo consolidation loan, even with my mom co-signing it. She says it's probably because she has some medical bills in collections but she's worked out a payment plan with them so she's going to call Wells Fargo on monday and see if she can't talk to someone. I'm just wondering why I even need a co-signer, my credit rating is good (I had to open a bank account last month and my credit score is 747) so I wonder why they'd want a co-signer. Is it because I don't have much of of a job history?
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May 2, 2010 14:54
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Wiggy Marie posted:Are you asking if you have additional eligibility for your second year of grad school? The answer is yes, you sure do, unless this isn't your second year and you've somehow exhausted all of your previous grad-level eligibility. If the financial aid office told you to submit the FAFSA, chances are you still have funds available. Its actually my first year, but the program just started this spring so I only have one semester finished so far.
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May 2, 2010 15:39
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100 HOGS AGREE, believe it or not the private loan my own company offers requires a credit score of 750+ to take it out on your own without a cosigner. Most likely the one you applied for has the same criteria. Since the credit crisis loans have gotten FAR stricter about their application criteria. If your mother has dings on her credit due to medical bills, she wouldn't be able to get that loan approved unless she can get those dings removed. Is there anyone else who can cosign? Kinkajou, I gotcha now! Yes, it can. Your total eligibility for aid is annual so if you were eligible for summer, for the same 2010-11 year you're out that money for the rest of the year. However it does NOT take away your ability to take out a GradPLUS loan for any additional costs you have.
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May 2, 2010 23:51
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I don't really know of anyone else, my dad's credit is poo poo.
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May 3, 2010 00:03
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Okay thanks. My spring semester was about 13,000 and 3,000 of that was in grad plus loans. Do you know how much can I take out in grad plus loans for my fall semester?
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May 3, 2010 02:05
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That would be determined by how much the financial aid office is willing to certify. It's best to ask them what you're eligible for.
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May 3, 2010 02:22
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Thanks Wiggy. I have a hard time imagining my program not ensuring that we'd receive enough funding for fall, but I still freak out.
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May 3, 2010 03:24
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I'm an American who just graduated from college, and I'm wondering what I should do with my loans. I have the following:code:
Other info: My gross monthly income is just shy of $2,000; however, with overtime it may end up being a bit more than that (new job). I estimate my bare minimum expenses are $700 per month. I have no other debt, about $500 in cash, and no other assets of note. My goal is to get a job that's actually in my field, which would likely provide an income double what I'm currently making. So: I'm wondering what the best way to pay off the loans are. Right now, the only questions I am aware of are: a) whether to consolidate, and b) what payment plan to choose. Any help with these questions (or other ones that I should be considering) would be greatly appreciated.
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May 4, 2010 03:39
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Hello. I'm graduating with my masters and would like to be given the latest information and advice. I have 2 loans. 1 consolidated and the other not. The consolidated loan is 9,000 @ 5.2% fixed. The Stafford loan is 13,000 @ 6.8% fixed. I have 20k in my savings account. What is the best way for me to lower my interest rate, and pay off these debts? I do not have a full time job and the payments are outside my ability to pay. (Without drawing from my savings account.) Would it be best to use my entire savings and pay off these ridiculous loans, or should I pay it off monthly? I see mention of a lower 3.4 rate....can I get that? Thank you so much. 
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May 4, 2010 06:53
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I have a question regarding student loans. After filing my fasfa, my efc is 0. I recieve the Pel Grant, and 1 subsidized for 3500$, and another for 2300 because I paid the interest on it when I got it. Is it possible for me to take out another unsubsidized loan for summer classes I'm required to take? (I'm required to maintain at least 6 credit hours to work in the Tutoring Center as a Part Time job.) If not, I have no idea how I will pay for the classes I need. Or keep my job for that matter.
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May 4, 2010 17:13
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clamiam, congrats on graduation! If you ultimately decide to just consolidate the Staffords, PAY OFF THE PRIVATE LOANS! They ARE the devil in debt, and believe me they will kill you with interest before you're done with them. As for the Staffords, I would suggest you pay off as much of the 6.8% Stafford loans as you can and make sure your consolidation includes the 1.9% rate. That way you come out with the lowest possible rate! Either way I do recommend consolidation as a whole. It will lower your monthly payments and fix your rates across the board. Just be careful with those private loans, they can be a doozy to deal with. Captain Apollo, congrats to you as well! Honestly, unless you really need the good ratings on your credit for some reason, pay off as much of those loans as you can immediately. I would actually suggest paying off everything you can but keeping a nice buffer for yourself in your savings, maybe 5000.00 or so, to keep yourself afloat. Since you can claim the interest you pay on your Staffords they're not QUITE the devil in debt. It's still best to pay any debt you have off asap, but I know how it feels when you have a chunk of money and would rather hang on to it. Once you've paid off your chunks of loans, consolidate the rest and work at them monthly. As for the lower interest rate, no you can't Your rates are fixed, the only way to lower them is if there's any kind of interest rate reduction already built in. The same goes for a consolidation loan. Also, send me some money :P Seeing Eye Duck, potentially, however the financial aid office is who determines your loan eligibility. You should go in or contact them to ask. If you received no unsub loans before and have a 0 EFC, you should still have all your unsub loan eligibility available.
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May 4, 2010 22:39
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Wally Marie posted:
Should have rephrased that, I already have an unsubsidized loan that I paid interest on. Can I get another seeing as how the limits are ~6000? I'll call them tomorrow and ask, thanks.
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May 4, 2010 23:15
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Thanks for the advice, Wally.
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May 5, 2010 03:27
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I have a dependency override appeal question regarding FAFSA. I basically have been estranged from my family for about a year right now with no contact. There has been no official documentation of abuse, ect (which would be in support of a dependency override appeal) However, it was basically an abandonment/bad home life situation. I will be able to have testimony of friend's families and coworkers that could vouch on this situation that could be to my merit. I'm trying to get my FAFSA processes right now, but am not able to get into contact with my family or they are unwilling to answer calls/emails from me to fill out my FAFSA. I need the FAFSA form done with in order for me to continue my college education/not be a waitress for the rest of my life. Does anyone have any experience with this/hints of how to appeal my situation?
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May 6, 2010 09:01
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You do now have the ability, as a "dependent", to file the FAFSA without your parent's information. The bad news is that this only processes for unsubsidized loans, no subsidized loans. It is also possible to appeal with the financial aid office, however it is much harder if you are not an emancipated minor. Speaking of - are you an emancipated minor? If so you may file your FAFSA as an independent.
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May 7, 2010 22:18
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I was awarded Perkins loans for summer school. The financial aid office says I need to submit a Perkins MPN. That's all well and good...but I can't find any lenders that lend Perkins loans. Not my current lender, not Sallie Mae, Chase, Citi, Wachovia, etc. Do you know of anyone who does?
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May 8, 2010 01:27
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Perkins loans are actually offered by the school. You should contact them and ask where you can go online to esign the Perkins MPN.
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May 8, 2010 02:14
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Wiggy Marie posted:Perkins loans are actually offered by the school. You should contact them and ask where you can go online to esign the Perkins MPN. oh okay.  Learn something new every day, thanks.
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May 8, 2010 03:40
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You're fine!  There's actually a specific website you can go to for the Perkins MPN, but sadly it's been so long that I don't remember what the address is. The school should be able to give it to you though if they don't have a link directly to it on the school site.
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May 8, 2010 04:52
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Wiggy Marie posted:You do now have the ability, as a "dependent", to file the FAFSA without your parent's information. The bad news is that this only processes for unsubsidized loans, no subsidized loans. I am actually not an emancipated minor. I decided not to go down that route since the age of majority for me was just around the corner at that time. I am not married, in the military, nor do I have a "babby." My meager internet detective work brought up the stipulation that one has to be self supporting, have a bad family situation, and not live with their parents as the basic gist. FAFSA= 
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May 8, 2010 10:24
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How big of a headache is it to get companies to change your graduation date so deferrals do not end earlier than they should? I received my quarterly statement from Chase and noticed that it said I graduate in December and payments would start in May. However, I actually graduate next May, so payments should start November 2011. I looked at my Direct Loans and noticed they said the same thing. I contacted my school (as the DL site said to do if graduation dates are wrong) and they said not to worry about it right now. I am just curious if student loan companies are quick to change these dates when school update, or if I should expect a big hassle trying to get them to see I am NOT graduating in December.
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May 9, 2010 14:15
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Wiggy Marie posted:Ziir, you apply for federal loans using the FAFSA. If the foreign university is accredited, you can still receive the loans overseas. There's a link for international schools in the OP, it might help you out! Despite being one of the top ranked engineering research universities in Germany and extremely well known in Europe and the USA, the graduate school I'm going to is not accredited. It's not listed on the FAFSA website. In fact, there is only one German university listed on the FAFSA website. I went ahead and accepted the subsidized $5200 Stafford loan that was offered to me for this academic year (2009-2010) just to have to help fund my next two years. Since I graduate in May, payments are going to start in November I believe. Is there a way for me to convince FAFSA that even if the university I'm going to is not accredited, that I'm still going to school at a world recognized research institution for a masters degree and at the very least let me defer payments and interest for two years? If not, what's the best course of action for me to do? Should I just do a 15 or 20 year repayment plan so that I can just pay the minimum $50 until I graduate and presumably get a job (though right now I'm shooting for a PhD) and then pay it off? Ziir fucked around with this message at 03:23 on May 10, 2010 |
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May 10, 2010 03:20
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Hey Wiggy, I had a quick question. I'm currently getting federal financial aid to that essentially covers my living expenses at school while my university covers tuition. I've lived on campus for the last two years and decided to live off campus for the next year. I'm under the assumption (and I hope I'm right), that my federal financial aid won't change because I decided to live off campus right? I currently get both un/subidized direct loans, along with the pell and SEOG grant. tyang209 fucked around with this message at 19:30 on May 13, 2010 |
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May 11, 2010 02:43
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Hey there, here's a question I'm not sure if you know the answer to: I'm $60,000 in debt with student loans, having graduated a year ago. My credit is destroyed due to financial hardship and the student loans kicking in. I have no family or friends with decent credit or good enough income to take over my loans for me. Right now, my federal loans are $40,000 and private the remaining $20,000. My private loan consolidation got denied due to my not-so-large income vs. my credit score. I have no idea what to do, and I'm in over my head. Is there a financially smart solution? Wells fargo said no, so what else am I left to do with those private loans? Thanks!
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May 12, 2010 23:17
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I'm in just about the same situation regarding my private loans (about the same amount). My brother, who's more financially stable, is going to try to cosign my wells fargo consolidation, but if they deny him too, what options do I have? My federal loans did get consolidated at least.
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May 13, 2010 00:00
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100 HOGS AGREE posted:I'm in just about the same situation regarding my private loans (about the same amount). My brother, who's more financially stable, is going to try to cosign my wells fargo consolidation, but if they deny him too, what options do I have? They didn't even give me an option of a cosigner when I called. They flat out denied me everything. I'm still clinging on to some hope that I will get these suckers consolidated.
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May 14, 2010 00:30
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thanks for your patience everyone. Ziir, unfortunately it has to be the school who initiates accredation with the States, not the student. You might want to contact the school's financial aid personnel (if you haven't already) and ask them if they deal with Stafford loans from the US. There's still a chance they do since international school confuse pretty much everyone. If they don't, you're stuck in personal loan landia tyang209, you may actually get a little MORE aid because they estimate a higher cost of living off-campus. It should not drop your aid any, at the very lease. mutantmanifesto, have you already consolidated your federal loans? If not, do so. That's not based on credit so you don't need to worry about a credit check. Once you've done so, contact them about getting onto the IBR repayment plan. Just say "IBR", they'll know what you're talking about. It'll lower your monthly payments by a lot. You can also get your federal loans onto a deferment/forbearance to pause payments. That's another thing you need to ask the servicer about - AFTER you consolidate. Private loans are a bear. Honestly, in your position I'd slap my federal loans onto a forbearance/deferment and work at paying the private loans down as much as possible. I can't get much more specific since I don't know what kind of payments you're looking at, but keep chipping at them and maybe take on a part time job to help with the cost. 100 HOGS AGREE, at that point unless you can take out a personal loan with enough limit to consolidate your private loans (which could be good or very bad), there's nothing else beyond consolidation except for calling the servicing agency and asking about what repayment plans they have. They *might* be able to lower a monthly payment depending on what's available.
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May 14, 2010 01:01
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I just graduated and here's what I'm looking at from loans: GradPLUS: $12,662 at 8.5% Stafford Subsidized: $22,497 at 6.8% Stafford Unsubsidized: $24,000 at 6.8% I will be making a pretty good paycheck and plan to pay well over the minimum each month. I'm considering consolidation, as I've read that the maximum interest rate on a direct consolidation is 8%. Because of this, I'm wondering if it would be wise to consolidate only my GradPLUS loan to drop the interest rate on that by 0.5%. If I were to consolidate all of the loans together, the weighted interest rate would be under 8%, but the full 8.5% weight of that GradPLUS would be included. Am I looking at this wrong? I'd like to only deal with a single bill each month, but it seems to me that consolidating only the GradPLUS loans would give me a free reduction of 0.5% Any tips you could provide would be much appreciated. I'm looking to pay off the debt very quickly, with a target of 3 years.
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May 14, 2010 06:33
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In your position I think, unless you cannot afford the payments as they are, that consolidating the gradPLUS loans separately and leaving the Staffords alone is by far the best option. You can always reconsolidate later to include the Staffords if things get tight or you need to, but since your higher debt is at the lower rate it'll be better to keep them separate as long as possible. Congrats on the pay check!
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May 15, 2010 00:03
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Am I absolutely insane for considering taking out $100K+ in Stafford and gradPLUS loans to pay for my MBA? I plan on working in a "public service" job and using income based repayment to cap the monthly payments, and making the minimum payments only, because the government will pay the balance after 10 years. Is there anything here I am missing? It seems pretty foolproof to me based on the info and calculator at finaid.org. There is really no way for me to attend this program without a massive amount of debt (high 5 figures minimum, low 6 figures more likely) on graduation unless I get a private fellowship/grant which is very unlikely.
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May 17, 2010 00:31
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Tyro posted:Am I absolutely insane for considering taking out $100K+ in Stafford and gradPLUS loans to pay for my MBA? I plan on working in a "public service" job and using income based repayment to cap the monthly payments, and making the minimum payments only, because the government will pay the balance after 10 years. HOWEVER remember you may not be able to get a public service job which will qualify you for loan forgiveness. These jobs are notoriously hard to get, and I am not sure which ones an MBA will qualify you for (most I am aware of are teaching or social-work type jobs). Still, whatever your principal, the payment cap will theoretically protect you from rear end raping. I don't think you're insane as long as you realise these limitations. Of course it's possible that IBR will be repealed some time in the future and you will be fukt. How much debt are you in already? Have you started school yet?
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May 17, 2010 01:59
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antwizzle posted:As long as they are all federal loans which qualify for IBR and loan forgiveness, you're good. I know it seems too good to be true, but I have a couple of friends lucky enough to land a job out of grad school riding the IBR train, and it really does work. Good points. No debt now other than my mortgage. Have not started school yet. I was under the impression that the "public service" qualifier was very broadly written, am I mistaken? I'm currently a police officer, I can't imagine any kind of law enforcement job not counting as public service. And yes I'm aware of the possibility of the federal government screwing me by repealing the law, but I'm hoping if they do that, they will at least have the decency to grandfather in the current participants... ninja edit: Just read a paper by a Georgetown law professor about this very subject. http://scholarship.law.georgetown.edu/fwps_papers/38/
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May 17, 2010 03:40
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Thanks for the help, antwizzle! He's correct Tyro, IBR is going to be your saving grace. It is highly unlikely the government would ever repeal a program like IBR. It's been around since student loans started and I anticipate it sticking around for a long long while (I'm personally counting on it!). The definition of a "public service" position has indeed become very broad, but it's still got its limits. Police officer definitely counts, if it helps!
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May 18, 2010 22:12
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You're amazing for keeping up with this thread. I'm ending up $16,000 short for college, after all my federal loans are exhausted. My parents and I are now trying to decide between another Parent PLUS loan and a private loan (which they couldn't cosign, their credit is very bad, and I'd have to find another kindly relative). My question: does the parent PLUS loan now defer until I'm done with undergrad? With grad school? Is there a grace period? For some reason I'm having a hard time finding current information online. Also how can I convince them that it's better to get a PLUS loan, and that I'll pay every cent of it, I just want to avoid private loans  . (My current plan is to get them to apply for PLUS whether they want it or not, so if they get rejected I can get more Stafford loans. But that probably won't happen.)
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May 18, 2010 22:38
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Thanks! It might be going away in another month. July 1st guys, FFELP goes away! Anyway, yes indeedy the PLUS loan does get deferred while you're an undergrad. I am actually not positive that it does while you're in grad school, it's been a long while since I dealt with them in servicing. Sorry In terms of what's better or worse, our selling point was always to explain that there's going to have to be a cosigner on a private loan anyway, so it might as well be a federal loan with a nicer interest rate and WAY easier repayment options. The only drawback to PLUS loans is that they can never be transferred to the student's name, but the student can always assume personal responsibility for the loans. It'll never be under your name/in your credit score but it's not unheard of for students to handle these on behalf of their parents. Going back to the deferment - even if once you're in grad school they can't use a PLUS dependent in-school deferment there's other forbearances/deferments they can use. By the way, I just read over the deferment form for PLUS loans and there's no mention of any limitations depending on student's undergrad/grad status, so you may be in luck!
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May 18, 2010 22:53
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Wiggy Marie posted:Thanks! It might be going away in another month. July 1st guys, FFELP goes away! Of course these are the people who suggested a 8,000$ loan to a woman living below the poverty line, and got heavily investigated for taking kickbacks from Sallie Mae and co. A well-known, top-15 ranked public university too, not DeVry. I've been paying on that PLUS loan... since 6 months before I graduated ( ) since my poor mom wasn't able to make the payments on her income and I actually had more $ as a student... from student loans  . So I was paying back a loan using money I received from that loan, bahahahahaha. Thank God the interest rate is reasonable, and there are repayment options. Stay away from private loans at all costs. This is one case in which it's better to owe money (indirectly) to the government. Tyro - I would imagine law enforcement would qualify you for forgiveness under IBR, assuming that's the field you want to stay in after you graduate. Just keep your loans federal and you'll be cool. As Wiggy says I do not foresee IBR getting cancelled any time in the future. Just stay away from private loans. A less-than-wise acquaintance of mine borrowed $42,000 from Sallie Mae for grad school in social work... imagine her surprise when she found out private loans, which had ballooned to close to $60,000 by graduation, didn't qualify for IBR or loan forgiveness.
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May 19, 2010 04:33
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